Toronto Rent Report, June 2026

Unit type	Average rent per month
1 bedroom	$2,100
2 bedroom	$2,749
Overall average	$2,400

Market Overview

Toronto's rental market continued its notable softening trend through June 2026. Overall average rents dropped to $2,400 per month according to Zumper's June 2026 Toronto rent research, down 3% year-over-year and representing the sharpest correction Toronto's rental market has seen in over a decade.

The Toronto CMA's purpose-built vacancy rate hit 3.0% in CMHC's 2025 Rental Market Survey, the highest reading since before the pandemic, up from 2.5% in 2024. By Q1 2026, vacancy in rent-stabilized buildings completed since 2000 (a segment less protected by Ontario's rent-control regime) reached 5.4%, a five-year high.

Toronto is one of the notable Canadian markets where a combination of slower rent growth and strong wage growth has led to improved affordability, a meaningful shift after years of relentless upward pressure.

Average Rents by Unit Size

Toronto's condo rental market (secondary rental market) shows even sharper year-over-year declines than the purpose-built segment, reflecting the wave of new condo completions.

Purpose-built rental market (Zumper, June 2026)

Overall average: $2,400 / month
1 Bedroom: $2,100 / month
2 Bedroom: $2,749 / month

Purpose-built rental (CMHC Oct 2025 turnover vs long-term tenant)

1 Bedroom (new tenant): $2,073 / month
1 Bedroom (long-term tenant): $1,711 / month

The gap between turnover rents and long-term-tenant rents (approximately $362/month for a 1BR) reflects Ontario's rent-control regime, which limits annual increases on existing tenancies but allows landlords to reset to market on vacancy.

Condo rental market (CMHC Q4 2025)

1 Bedroom condo: $2,313 / month · -4.4% YoY
2 Bedroom condo: $3,017 / month · -8.3% YoY

Neighborhood Landscape

Downtown Toronto and the immediate downtown-adjacent neighborhoods continue to command the highest rents, but have seen the sharpest year-over-year declines in the condo segment. Suburban markets and outer neighborhoods have held up better on relative basis.

Premium neighbourhoods

Downtown / King West / Entertainment District: Prime condo stock, transit hub
Yorkville / Rosedale: Historically the priciest, boutique buildings
Liberty Village / CityPlace: Newer condo-heavy neighbourhoods
Distillery / St. Lawrence: Walkable historic areas

Best-value neighbourhoods

Scarborough / Malvern: East end, transit-accessible
North York / Downsview: Mid-city, subway-adjacent
Rexdale / Weston: West end, budget-friendly
Etobicoke (outer): Suburban with waterfront access

See CMHC Toronto neighbourhood tables for detailed by-zone rent averages.

Supply and Vacancy

Toronto has absorbed a wave of new purpose-built and condo supply. The GTA's purpose-built rental vacancy rate climbed to 3.0% in 2025 from 2.5% the year prior. In the segment of buildings completed since 2000 (less constrained by rent control), vacancy reached 5.4% by Q1 2026, a five-year high.

New condo deliveries have added significant secondary-rental-market inventory. Combined with slower net migration and higher interest rates suppressing owner-occupier demand, the supply-demand balance has shifted meaningfully.

Concessions on new-build luxury inventory (one to two months free rent) have become standard as institutional operators compete for tenants.

Outlook

The Toronto rental market appears set for continued gradual softening through the second half of 2026. Wage growth (particularly in tech and financial services) is helping affordability metrics improve for the first time in a decade, but from an extremely stretched starting point.

What this means for renters

Real negotiating power on condo rentals, sharper declines than purpose-built
New-build luxury inventory in Downtown / King West is heavily concession-driven
Suburban markets (Mississauga, Scarborough, North York) offer better value than Downtown
Ontario rent-control benefit remains real, long-term tenants pay 15-20% less than turnover rates

What this means for landlords

Condo landlords face the most challenging conditions in the market
Purpose-built rent-controlled buildings retain pricing power on turnover
Small concessions accelerate leasing significantly in current conditions
Existing-tenant retention outperforms turnover economics decisively

SQRFT's July 2026 Toronto report will publish on the last business day of July.

What it means for you

Turn the market shift into a smarter decision

If you own a rental

Landlords

Rent-controlled and post-2018 buildings play by different rules. Ontario's rent control only applies to units first occupied on or before November 15, 2018. If your unit qualifies, the 2026 guideline is 2.5%. Newer buildings can raise rent by any amount at renewal.
Price to today's market, not last year's. Condo asking rents are down 4-8% YoY. Overpricing a listing now means 30+ days of vacancy in most 416/905 sub-markets.
Keep good tenants. The LTB backlog means an eviction over rent arrears can take a year. Preventing arrears with a strong tenant screening pays back many times over.

If you rent

Tenants

Ask for a rent-controlled unit. A pre-November-2018 unit gives you Ontario's 2.5% cap on renewal increases. That protection is worth thousands over a multi-year tenancy.
Concessions are back. Free-month deals and included parking are common in new downtown builds. Ask before you sign.
Know your N-form rights. An N4 (rent arrears) or N12 (own use) has strict rules. Do not sign anything or move out without confirming the form is valid with a paralegal or the LTB.

ONTARIO'S LTB IS THE BOTTLENECK

Toronto tenancies live and die at the Landlord and Tenant Board. Both sides need clean paperwork.

80,000+Ontario LTB applications filed annually (Tribunals Ontario)

Ontario's LTB is one of the busiest housing tribunals in North America, and wait times for a hearing can stretch beyond a year. Whether you are a landlord filing an N4 or a tenant defending against one, an evidence trail with dates, notices, and inspection records is what wins. sqrft.ca gives Ontario landlords and tenants an Ontario Standard Lease workflow, a timestamped move-in inspection, and a full communication log tied to each tenancy.

Free to list at sqrft.ca Built for Ontario

Average monthly rent in Toronto, by unit size